Wrong Advice?

jawa1

I would have thought it was standard practices for the Mortgage broker to see the actual documents detailing the current product I was on.

Surely it is one the tick box requirements the FSA set out that he has to do that?

I am happy with the product I have got but no idea if I would have been better of staying with my current product. I was paying for his advice not giving him advice!

AndrewSmith

jawa1 wrote: »

I would have thought it was standard practices for the Mortgage broker to see the actual documents detailing the current product I was on.

Good idea in practice however in my experience I would say only about 30% of clients actually have a copy of their original mortgage offer available.

Surely it is one the tick box requirements the FSA set out that he has to do that?

No. It is a requirement that the adviser carries out Fact Finding with the client to ascertain their current financial situation. This involves the client telling the adviser everything about their current mortgage etc. You will have signed a declaration that states the adviser is reliant upon the information provided by you and that any recommendation is based upon this information.

I am happy with the product I have got but no idea if I would have been better of staying with my current product. I was paying for his advice not giving him advice

Why have you left it so long before saying anything? You should have raised this with the adviser before completion of the new mortgage, as I said above this would have given you some 4-6 weeks to think it over.

jawa1

AndrewSmith wrote: »

Good idea in practice however in my experience I would say only about 30% of clients actually have a copy of their original mortgage offer available.


Why have you left it so long before saying anything? You should have raised this with the adviser before completion of the new mortgage, as I said above this would have given you some 4-6 weeks to think it over.

I have not actually signed the mortgage contract yet but have paid out the for the Home Buyers report and initial application fee of £199.

I applied 10 days ago and everthing is done with the contract at my solicotirs ready for when we complete the house move hopefully!

I am happy to go ahead with the mortgage and not taking anything further such as complaints or anything, I just asked the question to see what the response was and if I should use him again.

Thanks to the people who have provided constructive comments, funnily enough it the people on this topic who are advisors themselves!

EdInvestor

Speaking as a non-advisor, you obviously can't criticise an advisor for giving "wrong advice" or coming up with a less advantageous replacement mortgage, if you haven't given him the full information about your existing loan in the first place.

I am happy to go ahead with the mortgage and not taking anything further such as complaints or anything, I just asked the question to see what the response was and if I should use him again.

What a bizarre remark.Why do you think you have something to complain about?

It is you who has made the mistake, after all.

jawa1

EdInvestor wrote: »

Speaking as a non-advisor, you obviously can't criticise an advisor for giving "wrong advice" or coming up with a less advantageous replacement mortgage, if you haven't given him the full information about your existing loan in the first place.



What a bizarre remark.Why do you think you have something to complain about?

It is you who has made the mistake, after all.

“It is a requirement that the adviser carries out Fact Finding with the client to ascertain their current financial situation”

IMO he failed to do this as he did not check the tracker was a reverse tracker and ascertain the total cost of staying on this mortgage or moving.

It could have been that the tracker dropped to 2% below the base rate(now that would be nice!) but the client did not know this or understand what it meant but did have the product documentation with them.

Many people don’t understand mortgages products and they go and see & pay an advisor!

I actually new straight away that the product he came up with was better than the current product but was just asking peoples opinion on this.

dunstonh

“It is a requirement that the adviser carries out Fact Finding with the client to ascertain their current financial situation”

IMO he failed to do this as he did not check the tracker was a reverse tracker and ascertain the total cost of staying on this mortgage or moving.

You are wrong in your opinion. The factfind document is where answers to questions are recorded. He asked the question. He was given an answer. The answer was not correct but that is not the fault of the adviser.

The adviser gives advice based on the information provided.

Mr_helpful

In a sales environment it is important to build rapport with the client. This is not helped, if when having had a reply that sounded logical to one of your questions, you then accuse the client of talking rubbish.
The adviser did his job but was mis led, I dont really see how you can complain. The mere fact that he has found a better product than your reverse tracker is quite good but are you free from redemption penalties?

JoeK_3

I think that there is a lesson learned for both the client and the adviser.

1) Client please have all relevant details available to enable the adviser to give the best advice.

2) Adviser, check all documentation thoroughly if available.

JoeK

shelly

jawa1 wrote: »

I am happy with the product I have got but no idea if I would have been better of staying with my current product.

Didn't you work out the figures before you went to see the broker? i.e worked out what per month your current product was going to cost you had you stayed with it till 2010, then you could have compared it.